Under the Unclaimed Property Act (Act), pension plan administrators are required to remit to Revenu Québec the value of the benefits of members and/or beneficiaries that remain unclaimed at the end of a three-year period following either of these occurrences:
The year in which the member reaches the age of 71;
The year of the member’s death;
The date on which the member may claim the reimbursement of the value of their benefits if said value is less than 20 per cent of the maximum pensionable earnings, as a result of a decision made by the pension plan administrator to carry out such reimbursement;
The expiration of the 90-day period following the date on which the notice of the plan’s termination has been sent.
This requirement applies to all property located in Quebec, as well as to all property owned by a pension plan member or beneficiary who is domiciled in Quebec or whose last known address is in Quebec.
On June 1, 2022, a new temporary incentive implemented by Revenu Québec came into effect to encourage holders of unclaimed assets (including pension plan administrators) to remit such assets to Revenu Québec within the time limits set out in the Act. This incentive will be in effect until November 30, 2023.
The incentive allows pension plan administrators who have yet to remit the value of unclaimed benefits of members and/or beneficiaries pursuant to the Act to rectify the situation without any of the consequences that would otherwise apply. Specifically, Revenu Québec will waive the interest on late remittances. Furthermore, Revenu Québec will forego all legal proceedings and fines against pension plan administrators that take advantage of the incentive.
To be eligible for this incentive, all of the following requirements must be met:
Unclaimed financial assets are to be remitted to Revenu Québec along with a duly completed copy of the form titled Statement Concerning Unclaimed Property Remitted Under the Remittance Incentive: Unclaimed Financial Assets (BD-81.5.A-V);
The information contained in Form BD-81.5.A-V must be complete and accurate;
Revenu Québec has not instituted any legal proceeding against either the pension plan or the pension plan administrator in application of the Act;
The remittance must be for the value of the benefits of members and/or beneficiaries that became unclaimed in fiscal years ending on or before December 31, 2021, or, in certain cases, on or before December 31, 2022;
Form BD-81.5.A-V and the unclaimed assets must be remitted to Revenu Québec by November 2023 at the latest.
Pension plan administrators who wish to know whether their pension plan is eligible for this new incentive for late remittance of unclaimed pension benefits may contact any member of our Pensions, Benefits & Executive Compensation group.
For more information, please contact:
Natalie Bussière +1-514-982-4080
Catherine Gagné +1-514-982-4085
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